Next week could be very busy for Sterling exchange rates as the next meaningful vote on UK Prime Minister May’s deal will take place. It’s expected to be held on the 12th, with speculation mounting as to what could happen to the Pound in the event her plan is voted in favour of, or against again.
The Pound is the best performing major currency of 2019 so far and some substantial gains have been made, with GBP/EUR trading around a 22-month high and GBP/AUD trading around similar levels. The improvements for the Pound vs the US Dollar aren’t to the extent of other pairings as the US Dollar has remained relatively strong across the board despite the US Fed Reserve Bank adopting a more patient approach to its monetary policy with the chances of interest rate hikes this year now lower than originally expected.
Pound vs Dollar: Focus is on next week’s Brexit vote in Parliament
All eyes are turning to the vote next week and the subsequent votes that could take place if May’s deal isn’t voted in favour of. Some market commentators expect to see the Pound fall if Theresa May is unsuccessful whereas the general consensus is that the pound will spike upward if she is successful.
US Non-farm Payroll figures
Later today there will be US Non-Farm Payroll figures out of the US which will be released at 1:30pm. This data along with US unemployment figures will be released, as is always the case during the first Friday of the month. The expectation is for a figure of 180,000 new jobs outside of the agricultural sector so I would expect any deviations from the figure to potentially result in market movement for the GBP/USD exchange rate.
The GBP/USD rate is currently trading around 1.31 which is a long distance from the annual high of 1.4377. Next week could see Sterling spike upward or drop depending on the outcome of the vote so do feel free to register your interest with us if you wish to be updated if there are major market movements. You can send me a message directly using the form below and I will respond to your questions personally.